September 14, 2025

NEW DELHI: Get ready for a banking revolution! India has big dreams for its public sector banks (PSBs). At the two-day PSB Manthan conclave that kicked off on Friday, top officials and bankers gathered to plan how to turn these banks into global giants by 2047 — all part of the Viksit Bharat vision. Right now, only State Bank of India and HDFC Bank stand among the world's top 100 lenders. But the goal is ambitious: have at least two PSBs in the top 20 banks worldwide by the year 2047! How? By pumping up corporate governance, giving customers a superb experience, and modernising banks using cutting-edge tech like artificial intelligence. An official explained, "The aim is to prepare PSBs for the future and scale them up organically, while increasing resilience." Topics on the table include cybersecurity, workforce transformation, risk management, and adding a personal touch to banking. Some big names like RBI Deputy Governor Swaminathan J and Chief Economic Adviser V Anantha Nageswaran spoke at the event, sharing vital insights. Bankers also debated a falling current account-savings account (CASA) ratio and how to improve it. Another hot topic was giving a fresh boost to credit growth in crucial sectors like agriculture and micro, small, and medium enterprises (MSMEs). But there’s a challenge: Credit growth slowed to 9.9% in July 2025 from 13.7%, and lending to large industries grew less than 1%. Yet, state-run banks are not sitting idle. Their gross non-performing assets (NPAs) have fallen sharply from 9.11% in 2021 to 2.58% in 2025. Meanwhile, profits soared from Rs 1.04 lakh crore to Rs 1.78 lakh crore, and dividends jumped too! Remember the last PSB Manthan in 2022? Since then, the government asked banks to create a three-year strategy roadmap and encouraged bigger banks to help smaller ones by sharing best practices. Looking ahead, under the EASErise reform plan for FY26, PSBs will focus hard on strengthening risk management, handling economic shocks better, and keeping India’s financial system strong and stable. So, buckle up! India’s push to make PSBs future-ready with AI, strong governance, and a customer-first mindset promises a thrilling ride for the banking world.

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Tags: Public sector banks, Corporate governance, Artificial intelligence, Psb manthan, Credit growth, Banking modernisation,